News reports over recent months have tended to paint a rather mixed picture of demand for crypto assets amongst mainstream and institutional investors. Top CEOs such as JPMorgan’s Jamie Dimon and Larry Fink of Blackrock have made high-level public statements that their investors have little interest in crypto and that the sector cannot appeal to conventional investment funds. But this week yet more research has emerged which seems to suggest considerable – and growing – demand for the nascent asset class. New data gathered by Crypto Fund Research suggests that we are seeing an explosion in the number of crypto investment funds, and that the rate of growth is continuing to increase during 2018.
There are now no less than 466 crypto funds, of which more than half are venture capital and hedge funds. Whilst the good majority of these have relatively small holdings in terms of assets, the number of larger funds holding more than $100 million is also on the rise. Perhaps most encouragingly of all, the projected rate of increase during 2018 – some 165 new funds are expected to be added during the year – seems set to trump 2017’s total of 156.
Whilst the US dominates provision with 252 funds, there has also been significant growth in funds in China, Hong Kong and Europe, with the United Kingdom leading the way. All told, the increasingly crowded space now holds assets under management in excess of $7 billion, with no sign of a ceiling anywhere near. For those interested in a full breakdown of the data, Crypto Fund Research have made their findings available via their website.
Crypto Fund Research Founder Josh Gnaizda said he felt the results were perhaps a little surprising for many in the space, as the “dual headwinds” of “depressed prices” and “less than favorable” regulatory conditions might have been expected to dampen demand.
